Huaihe Energy acquires power assets, boosts core business

Huaihe Energy (Group) Co., Ltd. announced the acquisition of an 89.30% stake in Huaihe Energy Power Group Co., Ltd. through a combination of share issuance and cash payment. The total transaction is valued at 1,169,412.85 yuan, with 994,000.92 yuan paid in shares and 175,411.93 yuan in cash. This acquisition is a major asset restructuring and a related-party transaction, previously approved by regulatory bodies.

The transaction aims to enhance Huaihe Energy Group's asset quality, profitability, and sustainable development by integrating Power Group's operations. The Power Group's main businesses are thermal power generation, new energy power generation, and a supporting coal mine, aligning with Huaihe Energy Group's existing core activities. The acquisition also addresses and reduces intra-group competition.

The Power Group's valuation was finalized at 1,309,532.87 yuan for 100% equity, using the asset-based approach, which was approved by Huaihe Energy Holding Group. This strategic move is expected to expand Huaihe Energy Group's asset scale and market competitiveness significantly.